ROSSARI BIOTECH 2022-23 Annual Report Analysis

Wed, 10 May

ROSSARI BIOTECH has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

ROSSARI BIOTECH Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in FY23 as against 12.0% in FY22.
• Depreciation charges increased by 31.0% and finance costs increased by 76.3% YoY, respectively.
• Other income declined by 27.1% YoY.
• Net profit for the year grew by 9.8% YoY.
• Net profit margins during the year declined from 6.6% in FY22 to 6.5% in FY23.

ROSSARI BIOTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,830	16,559	11.7%
Other income	Rs m	191	139	-27.1%
Total Revenues	Rs m	15,021	16,698	11.2%
Gross profit	Rs m	1,778	2,155	21.2%
Depreciation	Rs m	481	629	31.0%
Interest	Rs m	127	223	76.3%
Profit before tax	Rs m	1,363	1,442	5.8%
Tax	Rs m	386	370	-4.2%
Profit after tax	Rs m	977	1,073	9.8%
Gross profit margin	%	12.0	13.0
Effective tax rate	%	28.3	25.6
Net profit margin	%	6.6	6.5

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ROSSARI BIOTECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 31.6%.
• Long-term debt stood at Rs 349 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 26% and stood at Rs 8 billion, while fixed assets fell 2% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 11%.

ROSSARI BIOTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,019	9,117	13.7
Current Liabilities	Rs m	3,602	4,740	31.6
Long-term Debt	Rs m	0	349	0.0
Total Liabilities	Rs m	14,168	15,717	10.9
Current assets	Rs m	6,749	8,483	25.7
Fixed Assets	Rs m	7,419	7,234	-2.5
Total Assets	Rs m	14,168	15,717	10.9

ROSSARI BIOTECH Cash Flow Statement Analysis

• ROSSARI BIOTECH's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 419.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 609 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 324 million from the Rs 223 million net cash flows seen during FY22.

ROSSARI BIOTECH Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	294	1,524	419.1%
Cash Flow from Investing Activities	Rs m	-2,989	-1,809	-
Cash Flow from Financing Activities	Rs m	2,918	609	-79.1%
Net Cash Flow	Rs m	223	324	45.3%

Current Valuations for ROSSARI BIOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.4, an improvement from the EPS of Rs 17.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 695.4, stands at 36.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	269.3	300.2
TTM Earnings per share	Rs	17.7	19.4
Diluted earnings per share	Rs	17.7	19.4
Price to Cash Flow	x	34.6	25.7
TTM P/E ratio	x	52.6	36.1
Price / Book Value ratio	x	8.6	4.8
Market Cap	Rs m	69,088	43,769
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for ROSSARI BIOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY23, from 1.9x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 7.5x during FY23, from 11.8x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 11.8% during FY23, from 12.2% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 17.6% during FY23, from 18.6% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.2% during FY23, from 7.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.9	1.8
Debtors’ Days	Days	75	78
Interest coverage	x	11.8	7.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	8.2
Return on equity	%	12.2	11.8
Return on capital employed	%	18.6	17.6

To see how ROSSARI BIOTECH has performed over the last 5 years, please visit here.

ROSSARI BIOTECH Share Price Performance

Over the last one year, ROSSARI BIOTECH share price has moved down from Rs 873.0 to Rs 695.4, registering a loss of Rs 177.6 or around 20.3%.

Overall, the S&P BSE SENSEX is up 13.6% over the year.

(To know more, check out historical annual results for ROSSARI BIOTECH and quarterly results for ROSSARI BIOTECH)